I called the experienced uncle (30 years’ experience) to thank him for my small gain so far of around after hearing what he say. After knowing that Supermax ex-date has been set, I call him again.:

1. SUPERMAX bonus issue ex-date is 4-Sep
2. Sifu said SUPERMAX share price is now RM20.94 while COVID-19 cases is 22m.
3. Sifu said he thinks COVID-19 cases will exceed 23.25m in less than 10 days time. When that happen, value of RM23.25 should be seen.

Some important part of the discussion:

1. SUPERMAX bonus issue ex-date is 4-Sep

Me: My friend told me Supermax has set its bonus issue on 4-Sep. I am very happy and I want to sell my shares to realize the profit. But before douing so, I want to call you and ask you again...

Sifu: The biggest enemy in trading and in many things is your own emotion. Do you think share price will go up or down in the future after bonus issue announced ?

Me: (Thinking for a while). Should go up right ? Because people feel happy...

2. Sifu said SUPERMAX share price is now RM20.94 while COVID-19 cases is 22m.

Sifu: I told you previously right about RM23.25? Earnings jumped 15x so share price should increase 15x. This is from the RM400m quarter which can sustain… share price should be RM1.55 *  15 = RM23.25. Remember this is not a recommendation, I am just an old uncle… so do your own calculation. (smiling…)

Me: But recently COVID-19 cases keep on increasing, what do you think?

Sifu: Yes, it has increased further to 22m. This number is close to RM23.25!

Me: So if the cases increase above 23.25m, means Supermax share price will exceed RM23.25???

Sifu: (BIG LAUGH) That is quite a crazy calculation. But you are not totally wrong ! Because more serious COVID means the last quarter RM400m profit has more upside to go. More earnings means higher share price value.

3. Sifu said he thinks COVID-19 cases will exceed 23.25m in less than 10 days time. When that happen, value of RM23.25 should be seen.

Me: I know this is bad, but how long more the cases will surge above 23.25m ? 

Sifu: (Use his hand move here and there)... about 7 to 10days. 

Me: Thank you so much sifu! 

Sifu: Sometimes things can go wrong so buy only if you have money and can stay at least 3 months. This is the time needed for a Company to show either better or worse profit. If you play daily contra or want to earn in a week, better don't buy.

Full conversation:

Me: Thank you so much sifu, I earned a bit after talking to you few days ago.

Sifu: You are welcome. Be careful, sometimes it is beginner's luck. You should continue to learn.

Me: My friend told me Supermax has set its bonus issue on 4-Sep. I am very happy and I want to sell my shares to realize the profit. But before douing so, I want to call you and ask you again...

Sifu: The biggest enemy in trading and in many things is your own emotion. Do you think share price will go up or down in the future after bonus issue announced ?

Me: (Thinking for a while). Should go up right ? Because people feel happy...

Sifu: If you think share price should go up, should you sell or hold or buy?

Me: I will hold then. 

Sifu: Hahaha, doesn't sound very logical but good enough. Maybe I ask you in another way, if you did not own Supermax shares previously, will you be willing to buy now?

Me: In that case, yeah I will buy. But i already have it so I think I am good for now. 

Sifu: OK, the answer is pretty obvious but I know it is hard to overcome your own emotion.

Me: OK, I will hold. But i still feel reluctant to buy more.

Sifu: It is Ok. Holding to it you already better than many people.

Me: Sifu, when should I sell? 

Sifu: I told you previously right about RM23.25? Earnings jumped 15x so share price should increase 15x. This is from the RM400m quarter which can sustain… share price should be RM1.55 *  15 = RM23.25. Remember this is not a recommendation, I am just an old uncle… so do your own calculation. (smiling…)

Me: But recently COVID-19 cases keep on increasing, what do you think?

Sifu: Yes, it has increased further to 22m. This number is close to RM23.25!

Me: So if the cases increase above 23.25m, means Supermax share price will exceed RM23.25???

Sifu: (BIG LAUGH) That is quite a crazy calculation. But you are not totally wrong ! Because more serious COVID means the last quarter RM400m profit has more upside to go. More earnings means higher share price value.

Me: I know this is bad, but how long more the cases will surge above 23.25m ? 

Sifu: (Use his hand move here and there)... about 7 to 10days. 

Me: Thank you so much sifu! 

Sifu: Sometimes things can go wrong so buy only if you have money and can stay at least 3 months. This is the time needed for a Company to show either better or worse profit. If you play daily contra or want to earn in a week, better don't buy.